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The Land Transport Authority (LTA) has awarded a $556m tender to develop the next-generation Electronic Road Pricing (ERP) system, in an effort to replace the current two-decade old gantry system.

“It is not practical to continue with the current gantry system, which is almost two decades old and will become increasingly expensive and difficult to maintain,” the LTA said in a statement.

The next-generation ERP system will be developed based on Global Navigation Satellite System (GNSS) Technology, and will be developed by a consortium of NCS and Mitsubishi Heavy Industries Engine System Asia.

“This next-generation ERP system will allow for more flexibility in managing traffic congestion through distance-based road pricing, where motorists are charged according to the distance travelled on congested roads, which would be fairer to motorists. It will also be able to overcome the constraints of physical gantries, which are costly and take up land space,” the LTA said.

In addition, the LTA said that it is considering new policies for off-peak car users, which may allow them to pay only for using their vehicles for short periods rather than the whole day, or for using them only on uncongested roads.

A new On-Board Unit (OBU) will replace the existing In-Vehicle Unit (IU), which can also be used to deliver additional services to motorists. For example, LTA will be able to disseminate traffic advisories through the OBU. The OBU can also be used to pay for parking, checkpoint tolls, and usage of off-peak cars electronically.

The new system is expected to be implemented progressively from 2020. There will an 18-month switchover period to transit from the current ERP system to the new system. The government will also bear the one-time IU replacement costs for Singapore-registered vehicles.

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